The Indonesia Tax Office (“ITO”) has issued Circular No. SE-9/PJ/2023 regarding the Resolution of Follow-up on Concrete Data. This Circular became effective on August 4, 2023. Concrete data includes tax invoices, withholding tax or income tax collection evidence, and transaction records. Concrete data that considered results in underpayment or non-payment of taxes will be followed up with further examination of the concrete data. For this purpose, a prioritization list is prepared by the Tax Office.

In general, in the event that the result of the examination indicates noncompliance from the taxpayer, for concrete data that will expire after 90 (ninety) days, the tax office will issue a letter of request for explanation of data and/or information (SP2DK = Surat Permintaan Penjelasan atas Data dan/atau Keterangan).

For concrete data that will expire in 90 (ninety) days or less, the tax office will issue a tax audit instruction letter.